Report Summary
Financial-Related Audit
Metropolitan Airports Commission
January 1, 1999, through December 31, 2001
Key Findings
- A January 2002 report by the Metropolitan Airports Commission's internal auditor identified $1.25 million in unbilled revenues from a large concession contract. Following release of that report, commission staff improved procedures for monitoring revenue contracts. However, we found that the commission needs to improve administrative policies and procedures governing these concession contracts, as well as other revenue-generating contracts. Formal policies should clarify awarding and selection practices for new revenue contracts and incorporate the financial procedures developed for monitoring revenue contracts. In addition, the policy should address requirements for independent audits and performance evaluations, and should specify the procedures for contract renewal and the maximum period before competitive re-bidding of contracts is required.
- The commission's internal controls over continuing professional and consultant service contracts need improvement. Contractors were not required to sign work orders, which specify the scope and cost of projects. In addition, some contractor invoices exceeded authorized work orders without prior commission written approval, some contractor performance evaluations were not completed, and some contracts could not be located. In addition, commission policies do not address the need for master contract limits or whether board approvals are needed when cumulative work order authorizations exceed the contract limit.
Agency Background
The Legislature created the Metropolitan Airports Commission (MAC) as a public corporation in 1943 to develop and operate regional airport facilities. The commission consists of 15 commissioners who establish policies appropriate for MAC to fulfill its statutory responsibilities. The MAC owns and operates seven airports in the metropolitan area, including Minneapolis-
St. Paul International Airport, which serves as the primary air carrier facility. The current chair of the commission is Mr. Charles Nichols, and the executive director is Mr. Jeffrey Hamiel.
Financial-Related Audit Reports address internal control weaknesses and noncompliance issues noted during our audits of state departments, agencies, boards, and metropolitan agencies under our jurisdiction. The scope of our work at the Metropolitan Airports Commission included income and expense contracts and payroll expenses for the period from January 1, 1999, through December 31, 2001.
